UPDATE: Sterne Agee Raises PT on Old National Bancorp from $12.50 to $14.50

Sterne Agee has published a report on Old National Bancorp ONB increasing the price target from $12.50 to $14.50 and increasing estimates for the company. In the report, Sterne Agee wrote, "Old National (ONB) wins bidding for long overdue FDIC deal. Evansville, IN-based Integra Bank (IBNK: $0.06, Not Rated) was closed by the FDIC on Friday after nine quarters of undercapitalization. Evansville, IN-based ONB assumed $1.5b of deposits (ex-brokered) at a 1.0% premium and purchased $1.2b of loans with loss share (details unknown). Our initial take is the deal likely was competitively bid by ONB (given low cost to the DIF) due to the greater earnings impact generated by the combination of two in-market competitors with high market share and overlap. This should generate more revenue synergies and cost savings than the typical FDIC deal. The company will release 2Q11 earnings and details on the deal this morning." Sterne Agee rated Old National Bancorp a BUY with a price target raised from $12.50 to $14.50.